Given to where to go net stock holding initial rating

Deutsche Bank today released its research report, giving the initial rating of where the net (NASDAQ:QUNR) stock is "held", and the 22.10 dollar 12-month target share price.

The following is the full report:

Mobile service will be the main battlefield

Where are you going? The network is transforming from travel search and travel price comparison service providers to complete solution providers. The network is opening a new era in China's online travel industry by establishing links between hotels and airlines in China, as well as online end users. By providing hotel reservation services in a mobile environment, where to go to the network is facing the best opportunities and great execution risk. Although we are increasingly confident about where to go to develop real-time mobile booking services, we still give the initial rating of where to go on the net stock "hold" for valuation reasons.

Bring online travel services to new levels

Where to go? The net is not just about travel, it's about helping home hotels find and meet the needs of online travel consumers. There's a lot of market opportunity. The network may allow travel service providers to break the existing model of the line and the online travel service, that is, to discount the price of a hotel room and charge a commission.

Unmatched advantage: Software as a service solution and cooperation with Baidu

Where to go? The web's software, a service solution, is the core of the company's strategy to challenge the current online travel service, the converged travel services provider. In the consumer market, through cooperation with Baidu, where the network will consolidate the leading edge of online search market share. We expect that from 2013 to 2015, this will bring a value of 6 billion to 9 billion yuan of traffic. The future of this cooperation will deepen and bring greater opportunities, and go where the network will be responsible for the management of Baidu's new interactive search advertising platform Zhixin travel business.

Initial rating of "hold", Target price 22.10 USD

With the improvement of profit predictability, we will use the market surplus growth ratio (PEG) as the main valuation method. Where do we give it to? The net 2015 market profit growth is 0.5 times times, the non-US general accounting standards are expected to be 0.55 U.S. dollars per share, 2015 to 2017 non-US general accounting standards earnings per share annual compound growth rate of 88%, which means to where the net of the 2015-year forward earnings ratio of 40 times More than 23 times times the average level of the Internet and the global travel industry in China. 2015 is expected to be the first year to where the net is profitable. Where to go? The downside risks to the web include competition in the online travel market and cost control issues. The upside risks include faster than expected commercialization and the development of online travel, and better than expected brand awareness.